SG Banks: CIMB maintains OverWeight on SG Banks, with unchanged TP and stock ratings. House believe wealth-management services will prove an important differentiator for SG banks in the years ahead. Benefits are manifold:
1) business provides banks with strong pool of sticky deposits;
2) fees could grow in a less-capital-intensive manner;
3) SG banks can expand business beyond constraints of geography; and
4) in the Asian context, Asian banks can become stickier with key clients….
DBS remains House top pick as it is most sensitive to an eventual interest-rate rise and for its efforts to build up its Treasury & Markets, and private-banking businesses.
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